by John Darer CLU ChFC MSSC CeFT RSP CLTC
Who is Weiss Ratings?
Weiss Ratings has been in business since 1971, but when it comes to structured settlements, you tend to 
mainly see A.M. Best ratings and ratings from Moodys, Standard & Poors and Fitch (formerly Duff & Phelps). There are also other so-called Tier 1 ratings such as Kroll Bond Rating Agency, LLC ratings (KBRA) that are less commonly seen with structured settlement annuity issuing life insurance companies.
Weiss | First Insurance Rating Organization to issue Independent Financial Strength Ratings for Life and Health Insurance Companies
My first recollection of the elevation of Weiss Ratings (formerly known as Weiss Research) was during a period of heavy criticism of the larger rating agencies during the Executive Life era. Martin Weiss, the company founder testified before Congress and the Senate in 1991 and 1992.
Weiss ratings became the first insurance rating organization to issue independent financial strength ratings for life and health insurance companies.
The Wall Street Journal reported that the Weiss stock ratings ranked #1 in profit performance, ahead of ratings by Goldman Sachs, JPMorgan, Merrill Lynch, Morgan Stanley, Standard & Poor’s, and all other firms covered.
In 2004, a U.S. Government Accountability Office (GAO) found that the Weiss insurance company ratings beat those of Moody’s, Standard & Poor’s, and A.M. Best by at least three to one in accuracy.
Ratings are helpful and important but not exclusive factor in the insurance decision making process (which includes structured settlement annuities).
Helpful links
- Rating Agencies (naic.org)
- Master NAIC Designation and Category grid – 2020.xlsx. Note that Weiss Ratings is not on the NAIC grid. That doesn't mean you should exclude them as part of your evaluation and consideration of any insurance placement, including the placement of structured settlement annuities.
Why Is Weiss Ratings Not on the NAIC Grid?
I asked the NAIC for a response to this question on January 9, 2024 7:05pm,through their email portal
"Hi,
"Only ratings from SEC recognized nationally recognized statistical ratings organizations (NRSRO) that have requested and been approved by the Valuation of Securities (E) Task Force to be a credit rating provider (CRP) to the NAIC are on the grid for translation to an NAIC Designation"
Insurance Companies – Weiss Ratings